Acquiring the services of a financial adviser isn’t widely practised by the average Nigerian, most likely because you believe you don’t have that much money nor do you own a multi million Naira company therefore, why hire one? But you don’t need to have a lot of money or reach retirement before you consider taking up the services of a financial adviser. An adviser can come in handy to safe you from making mistakes with your investments or squandering it. Below are 6 instances when you should consider speaking to a financial adviser.
1. When you get a new job
Starting a new job comes with better pay and benefits, so just before you make a list of all those things you’ve always wanted to buy, an adviser would be handy to help you figure out the best way to manage your income, set up a personal budget, create a plan for medium-term goals – such as buying a house – invest and take full advantage of other workplace benefits. Financial advisers can also help you realistically figure out how much you need to save for retirement and what adjustments you might need to make if you’re unable to meet that goal.
2.Your marital or family status changes
If your status changes either because you’re getting married, divorced or following the death of a spouse, an adviser can serve as an impartial third party to help you successfully merge or untangle financial accounts, and reconcile any differences in your saving and spending habits without letting emotion cloud your judgements. If one spouse was more actively involved with the finances and that spouse passes away, the survivor will be in need of financial guidance. If you have children, planning for their future are goals that should be shared with your adviser.
3.You just retired
Most individuals tend towards getting the services of a finance manager when they are approaching retirement. After spending decades of your life working, you sure wouldn’t want to lose it all making the wrong decisions. You need a strategy and a financial adviser can draw up a plan on how you can manage your funds in a way that insures you won’t outlive your money.
4. You’re a business person worried about the market
A financial adviser can help you make rational financial decisions without letting emotion cloud your judgment. Especially in times of market volatility and economic uncertainty, individual investors are vulnerable to making knee-jerk decisions that can have long-term implications. The adviser’s job is to manage that emotion, knowing it’s normal for the market to go through ups and downs.
5. You just received a huge amount of money
The excitement that comes with acquiring or being handed a large amount of money could jerk you into making some rash financial expenses. Therefore it’s worth consulting a professional on how best to manage that money in a manner that best furthers your financial goals/ profit rather than squander the opportunity it presents.
6. Preparing to pass on your estate
At some point, you and your money will be part ways forever. When you start to think about estate planning, it can be smart to bring in a professional for the discussion. A financial adviser may be able to suggest ways to minimise estate taxes, plan for final expenses and review beneficiary details on accounts.
If you do choose to seek the services of a financial adviser, carefully choose the right professional for the job. It’s only wise to plan for the money you have right now so it’s managed properly.
photo credit; money.usnews